Bitcoin (BTC) has climbed above $84,000, rebounding strongly alongside traditional risk assets. The move pushed BTC above its 200-day moving average, a crucial level for long-term market trends. Meanwhile, Solana (SOL), Chainlink (LINK), and SUI led the broader market rally.
Crypto and Stock Markets Rebound
The renewed risk appetite lifted not only cryptocurrencies but also traditional markets. The S&P 500 gained 1.7%, while the Nasdaq surged 2.3%. Gold, which recently hit an all-time high above $3,000, pulled back slightly.
BTC briefly touched $85,000 before settling around $84,400, marking a 4.7% gain in 24 hours. Analysts suggest the bounce could signal a more stable base for cryptocurrencies following recent drawdowns.
Impact of Leveraged Liquidations
According to Paul Howard, senior director at crypto trading firm Wincent, over $2.6 billion in leveraged crypto positions have been liquidated in the past week, primarily long positions. This flush-out of excessive leverage has left the market on healthier footing.
Can BTC Hold Above the 200-Day Moving Average?
The rally propelled BTC back above its 200-day moving average, currently at $83,767. This benchmark often acts as support in a bull market, while a failure to hold above it could indicate further downside risk.
If Bitcoin closes the day above this level, it could bolster bullish sentiment and suggest the worst of the correction is over. However, failing to maintain support may signal a deeper pullback.
Cross-asset trader Bob Loukas remains optimistic, stating that both BTC and stocks have room to run. “Feels like we should be close to the end of panic, at least for now,” he noted, suggesting a recovery phase could last for a few weeks before the market reassesses.
